The Federal Government has sold N114.89bn ($717.61m) worth of treasury bills of maturities, ranging between three-month and one year, with yields slightly higher on 91-day and 364-day paper and flat on the six-month note, the Central Bank of Nigeria data has shown
Reuters reports that the CBN sold N32.89bn worth of 91-day paper at 11.6 per cent, slightly higher than the 11.5 per cent at the previous auction on July 10, N30bn of 182-day paper at 12.75 per cent, the same rate as the previous action.
Also, the bank sold N52bn in the one-year bond at 13.33 per cent, more than the 13.21 per cent the same tenor was sold on June 26, the last time the note was on offer at the regular auction.
The CBN had on Tuesday expressed concern over the excess liquidity in the balance sheets of Deposit Money Banks, and concluded to apply 50 per cent Cash Reserves Requirement to all government deposits with commercial banks.
The decision was announced by the CBN Governor, Mr. Lamido Sanusi, shortly after the Monetary Policy Committee meeting held at the central bank’s headquarters in Abuja.
Sanusi said the introduction of the 50 per cent CRR to public sector funds became imperative in order to further tighten liquidity owing to increased spending in preparation for the 2015 elections.
The spending by politicians, according to him, may exert pressure on the exchange rate and inflation.
The governor noted that about N1.3tn of public sector deposits were currently with commercial banks, adding that such huge fund posed a risk to the current liquidity condition.
Meanwhile, Fidelity Bank Plc said on Friday its half-year pretax profit rose 14.2 per cent to N11.19bn ($69.5m), up from N4.23bn a year ago.
According to the bank, gross earnings at the mid-tier lender rose to N62.9bn during the first half of the year to June 30, against N53.6bn in the same period last year.
Unity Bank Plc had on Thursday said its half-year pre-tax profit rose 24 per cent to N4.35bn ($27.17m), compared with N3.52bn in the same period a year ago.
According to the bank’s filing with the Nigerian Stock Exchange, gross earnings in the first half of the year jumped to N30.17bn from N25.93bn.